PEST ANALYSIS OF

PREPARED
BY A STUDENT OF CLASS RS-20-2
VAKULA ANNA
 AMAZON

is an e-commerce giant that has made it big in the retail market. Over the years,
Amazon has expanded its business and has also been involved in cloud
computing, digital streaming, and more. The firm has made its mark on e-
commerce. Despite having a stable position in the market, this multinational
technology company deals with increasing competition in the field. Amazon
PEST analysis helps the company to study the remote macro-environment and
steadily deal with the competition. It also helps them identify their drawbacks
and work on improving customer experience.
 POLITICAL FACTORS:
The growing popularity of the online
retail business is a result of
governmental encouragement.
However, this growing
The government, its policies, and its rules determine the growth of an organization in any given industry of
online retailing can also prove to be a
state or country. It includes tax rules and regulations, corruption, foreign risk fortrade
Amazon policy,
facinglabor
tough law,
and all these components are the political factors of
Governmental support a PEST analysis. competition from big brands,
cybersecurity and smooth especially foreign companies making
operation of e-commerce, their way into online retail.
It studies the which favors Amazon's
government business. Moreover, the
intervention and the political stability of
scope of the developed countries works
industry at in favor of Amazon.
flourishing in that
particular area.
 ECONOMIC FACTORS:

Economic factors are directly related to the company's revenue. It includes unemployment rates,
interest rates, raw material costs, and more. This factor gives the company an idea about the
consumer's purchasing power and plans price, products, and services accordingly. It directly
influences the company's profitability.
Though Amazon has extended its The large variety that Amazon
services worldwide with the help offers attracts consumers even
of government aid, the taxes when they are not seeking
remain a constant challenge with something expensive. In
its ever-changing number, developing countries, economic
especially in Asian countries. stability has growth opportunities
for Amazon.
 SOCIAL FACTORS:

Understanding consumer behavior leads to an understanding of the need and demand of products.
Primarily it is determined by the socio-cultural background of a place. Social factors like people's
cultural change, education level, population help companies assess the potential market.
Amazon depends on technology to On the other hand, the growing tendency
replace employees. The rate of of online shopping and increased
decreasing job opportunities can be a consumerism will benefit the company.
threat for the company in terms of social Easy availability of products and
factors. doorstep delivery are some reasons
behind the popularity of Amazon among
the young ones and aged people for
whom leaving home is a concern.
 TECHNOLOGICAL FACTORS:

Technological advancement is another crucial factor in determining an organization's strengths

and weaknesses. Automation, technical innovation, change, and technical awareness are the
factors that help companies to plan for their future intelligently. It guides them to adopt new
technologies, plan their manufacturing, logistics, and distribution.
The expansion of operations of Amazon The live chat option makes them easily
has led it to face challenges even from accessible. Therefore, Amazon has plans
the technology firms. Amazon's to hire more people for technological
innovative and creative ways to reach out advancement. It will help them to ensure
to its customers are unparalleled. They a better customer experience.
are ever exploring new and effective
ways of shipping and delivering
packages.
THANK YOU FOR YOUR ATTENTION!